Module 4

Environment
Module 4
Environment ENVIRONMENT

Introduction 4.1 Introduction

4.5 Indicators

Oil and gas operations, from exploration to manufacturing, storing WATER

and transporting products, can have a wide-ranging impact on the 4.5 Key points to address
environment. As a result, companies apply systematic tools to: 4.6 ENV-1
• identify and assess the environmental impact of their operational Freshwater
activities; 4.10 ENV-2
Discharges to water
• mitigate risks of pollution or contamination, by applying
environmental management systems (EMS) including use of control BIODIVERSITY
technologies;
4.12 Key points to address
• protect and conserve natural resources, particularly by managing 4.13 ENV-3
materials efficiently and minimizing waste; Biodiversity policy
• reduce the impact of emissions and waste streams; and strategy
• respond effectively to incidents, particularly spills to water or land; and
4.15 ENV-4
Protected and priority
• decommission assets at the end of their operating life in an areas for biodiversity
environmentally-sound and safe way. conservation
Environmental risks are of increasing importance to a growing
AIR EMISSIONS
number of stakeholders. Many banks, for example, have exclusions
or use enhanced diligence processes when financing assets that are 4.17 Key points to address
located in protected or sensitive areas. Rating agencies with a focus 4.18 ENV-5
on environmental, social and governance performance consider Emissions to air
environmental concerns and the strength of a company’s response to
SPILLS TO THE ENVIRONMENT
environmental risk management. Companies themselves carry out due
diligence to examine environmental risks when conducting acquisitions 4.20 Key points to address
and divestments. Poor environmental management can add operational 4.21 ENV-6
risk, damage a company’s reputation and impact finances. Spills to the
Using a robust EMS, or integrated operating management system (OMS),
environment
helps companies demonstrate continuous improvement in reducing MATERIALS MANAGEMENT
their impact on the environment. Industry benchmarking based on
4.25 Key points to address
common indicators also allows for greater performance comparison
across the sector. 4.26 ENV-7
Materials
Environmental issues are generally local in nature, and differences in management
operations, risks, impact regulatory frameworks and local expectations
can result in reporting challenges. Depending on the nature and DECOMMISSIONING
location of your business activities, the issues you choose to report on 4.30 Key points to address
may differ from those reported on by other companies.
4.31 ENV-8
Decommissioning
WATER 4.33 References, links and
Water is an essential resource for human development, agriculture other sources
and industry. The UN considers access to water and sanitation to
be a human rights issue that entitles everyone to sufficient, safe,
acceptable, physically-accessible and affordable water for personal and
domestic uses [1]. With the global population rising, rapid urbanization
and agricultural and economic development, demand on freshwater
supplies is likely to intensify.

4.1
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY

The effects of a range of issues, such as climate change, land use, and water availability,
reliability and quality, have many potential implications for oil and gas industry activities.
For example, industry operators may consider operational locations where the
availability and quality of water are already challenges, or could become challenges in
the future, or in locations exposed to extreme weather and flooding.
Lack of access to water can have a significant impact on local communities and
stakeholders. It can also create physical, regulatory and reputational challenges for
industrial users, including the oil and gas industry. For example, the use of water in
hydraulic fracturing has led to environmental and community concerns, resulting in
prohibition in some locations.
Meanwhile, the connection between energy and water is growing as countries look to
increase energy supplies (such as biofuels) that may require greater access to water.
Equally, energy – often from oil and gas – is typically needed to collect, transport, treat
and distribute water. As a potentially significant local user and producer of water, oil and
gas companies are vulnerable to water disruption in their operations and supply chains.
As a result, effective water management is essential, in terms of the volumes of
freshwater and non-freshwater withdrawn or consumed, the protection of water quality
and the maintenance of access to reliable resources. More companies are developing
water management strategies, improving their understanding of water scarcity risk
management, developing water technology, recycling, utilizing alternative water
sources (such as produced water) and developing collective participatory approaches to
water management, within the industry and with other sectors.

BIODIVERSITY
‘Biological diversity’ is the phrase used to describe our planet’s variety of living organisms
from all sources, including terrestrial, marine and other aquatic ecosystems. In the oil
and gas industry, biodiversity challenges tend to relate to the impact and dependency
that onshore and offshore activities might have (in the short and long term) on air, water
and land. However there are also opportunities, since business can help to develop and
implement nature-based solutions to tackle issues such as climate change.
Biodiversity quality is the basis of effective ecosystems and, thereby, underpins the
wide range of benefits (direct and indirect) that people derive from those systems –
a concept known as ‘ecosystem services’.

ECOSYSTEM SERVICES: THE BENEFITS THAT ECOSYSTEMS CONTRIBUTE TOWARDS HUMAN

WELL-BEING (Millennium Ecosystem Assessment, 2005) [2]
Ecosystem services can be divided into four categories:
1. Provisioning – products or goods such as water, fish, or timber.
2. Regulating – ecosystem functions such as flood control and climate regulation.
3. Cultural – non-material benefits such as recreational, aesthetic and spiritual benefits.
4. Supporting – fundamental processes such as nutrient cycling and photosynthesis that support
the above three categories.
Source: Based on World Resources Institute (WRI) materials.

4.2
Module 4
Environment

Onshore and offshore operations occur in a wide range of natural and social environments
with different sensitivities and regulatory regimes. Sometimes these operations take place
in, or near, legally-protected areas, or sites high in biodiversity that are not legally protected
but may still be relevant for conservation. These operations depend on environmental
resources and have the potential to have direct, indirect and cumulative impacts on
biodiversity. Identifying and managing these issues at an early stage can help a company
manage its environmental risks and opportunities. Companies may act in accordance with
the ‘mitigation hierarchy’, a tool that helps prevent and remediate biodiversity risk. IPIECA
and IOGO jointly published a briefing document in 2018 on managing biodiversity and
ecosystem services that provides more information on applying the mitigation hierarchy in
the oil and gas industry [3].
Reporters can draw information on biodiversity from impact assessments, strategies
and plans and operations. Biodiversity offsets, which typically seek to compensate
for any residual effects after all reasonably feasible preventative measures have been
taken, are increasingly expected from both shareholders and stakeholders, such as host
governments, finance institutions and conservation non-governmental organizations
(NGOs). Offsets intended to mitigate carbon emissions may also have collateral effects
on biodiversity, through activities such as reforestation or land / soil restoration, which
offer a range of environmental and social benefits.

AIR QUALITY
Air emissions from oil and gas industry operations, including pipelines and
transportation, may contribute to local or regional impacts that can affect human
health, flora and fauna or cultural heritage sites.
Impacts associated with greenhouse gas emissions, which are global rather than local,
are included within Module 3 Climate change and energy.
Engineering technologies can be designed for new plants or retrofitted to reduce air
emissions, helping minimize the impact on local air quality.

4.3
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY

SPILLS TO THE ENVIRONMENT

Oil spills, which can result from operational incidents, poor maintenance, or equipment
corrosion, can in the worst cases have severe and multiple environmental, social, health
and economic consequences. Spills can also have severe, long-term consequences for
a company’s reputation.
For these reasons, in addition to reporting on the occurrence of spills, reporting on how
a company is reducing and eliminating oil spills continues to be a primary indicator of
operating performance. Module 5 Safety, health and security addresses oil spill loss of
containment risk within indicator SHS-6. There is also a useful example in Module 1
Reporting process on ‘Spills to the environment and process safety’ on page 1.30 that
illustrates how the environmental and safety aspects of spills can be linked within reports.
You will need to confirm your preparedness to respond reliably and rapidly to incidents
and demonstrate that you have robust skills and resources to do so. It is good practice
to separately report on non-hydrocarbon spills, if significant. These can include
chemicals, produced or process water, raw materials or solid wastes. When reporting
significant chemical or other non-hydrocarbon spills, you should include a description
of the nature of the substance spilled and the associated risks. Spills of solids can
include wastes such as plastic pellets, including nurdles.

MATERIALS MANAGEMENT
Materials management is an integral part of responsible consumption and production.
It involves minimizing the quantity of materials / resources used, reducing waste and
the sound management of chemicals, throughout the entire oil and gas industry supply
chain. Robust management processes help minimize localized risks to the environment,
communities and cultural heritage, while enhancing resource use and cost efficiency.

DECOMMISSIONING
When oil and gas assets reach the end of their lifecycle, there is a clear expectation that
a company should decommission and, as appropriate, dismantle, remove from service
or reuse the facilities in accordance with environmental standards, taking into account
the needs of stakeholders and communities.
A company’s decommissioning plans need to be detailed and involve regulators and
other stakeholders. Effective plans address potential environmental and social impacts,
while making sure the work is carried out safely and in compliance with regulations.
Decommissioning planning is normally regulated, with governments and industry
working together to make sure that financial and organizational provision is made for
plans that meet defined standards for environmental and cultural heritage protection
and address societal expectations.
The technical complexity and potential impacts of onshore and offshore
decommissioning will depend on the type, scale and geographic location of the assets,
as well as ecosystem and socio-economic considerations. However, the overall goals
are the same: protecting the environment; minimizing the impact on communities; and
ensuring the safety of the workforce.

4.4
Module 4
Environment

WATER

Key points to address

A. Context on your overall interaction with water and how that might affect other water users. This
can include your strategic approach to water management across your supply chain and any
responsible stewardship approaches (including stakeholder engagement) you take to manage
water as a shared resource, such as a watershed-based approach. This is especially relevant in
locations where water stress / scarcity is a concern.
B. A narrative account of any global or corporate-level public commitments you have put in place
to manage water resources responsibly. This might include water use commitments in areas of
water scarcity, or quantitative targets relating to water quality, intensity, recycling or reuse.
C. The types of operational activities where water management is material. As well as
conventional upstream, midstream and downstream oil and gas activities, this could include
other activities such as non-conventional extraction from shale or oil sands with potential
impacts on local water or land resources, such as induced seismicity. Other examples may
include power generation, heating and cooling processes, or the production of alternative /
renewable energy sources, such as biofuels.
D. The risks and opportunities for your overall activities associated with water, setting out the
nature of those risks, such as the effect of water shortages on operations, and how you assess
and address them. Opportunities may stem from more efficient use of water within operations,
increasing access to freshwater resources for local use.
E. Progress or outcomes from your stakeholder and regulatory engagements, risk assessments,
resource efficiency plans, implementation activities, performance evaluations and
management reviews.

To support your narrative, informed by these key points, you should report on
any or all of the following indicators, based on your material issues.

4.5
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY
ENVIRONMENT

INDICATORS ENV-1

WATER
Freshwater
ENV-1
Freshwater WHY THIS MATTERS
Water management can influence the availability of water for the local environment,
ENV-2
Discharges to water socio-economic development and future demands. Reporting on freshwater withdrawal
and resources provides specific quantitative and qualitative information that supports
your narrative on how you approach water management.
BIODIVERSITY

ENV-3
Biodiversity policy and
SCOPE
strategy You should report the total volume of freshwater that you withdraw either directly from
freshwater sources, such as lakes, groundwater aquifers and rivers, or from municipal
ENV-4 freshwater supplies and other water utilities. Some operations may return significant
Protected and priority amounts of freshwater, treated to the appropriate standards, back to the same or
areas for biodiversity
different source.
conservation
You should also report the amount of freshwater you consume (see Figure 4.1), which
AIR EMISSIONS is the difference between the amount you withdraw and the amount you return. We
would encourage you to report both freshwater withdrawn and consumed, subject
ENV-5 to the availability of data, as this gives a more complete picture of your sustainability
Emissions to air performance trends.

SPILLS TO THE ENVIRONMENT

ENV-6
Spills to the environment

MATERIALS MANAGEMENT

ENV-7
Materials management

DECOMMISSIONING

ENV-8 Figure 4.1: Calculation of freshwater consumption

Decommissioning
The following types of water should be excluded from these two reporting elements of
withdrawn and returned freshwater:
• freshwater, used for once-through cooling water, returned unchanged (excluding
thermal effects) into the same source, or a different freshwater body located in the
same area in which the freshwater was originally withdrawn;
• produced water, including flowback water, from exploration and production
operations;
• water provided – and already counted – by another facility within your company;
• stormwater discharged (if not harvested for freshwater site use); and
• fresh groundwater extracted solely for remediation or to control the migration of
contaminated groundwater.

4.6
Module 4
Environment ENVIRONMENT

While the exclusions above refer to freshwater reporting, these other types of water are INDICATORS
covered by several other reporting elements and you can include them if their impact is
significant to your management of water.
WATER
If freshwater used for once-through cooling water is not returned to the same water
source or another freshwater body, municipal supply or other water utility, it is considered ENV-1
consumptive use and you should, therefore, include it in your freshwater withdrawals. Freshwater
As the potential effects are likely to be localized and more significant in areas where the
ENV-2
freshwater supply is stressed or scarce, several reporting elements encourage you to
Discharges to water
provide additional information on your operations in such locations. When reporting on
water-stressed or water-scarce areas, provide your company’s definition of these terms
(see the Definitions of Terms page 4.9). BIODIVERSITY

Note that other indicators in the guidance may link to your management of freshwater ENV-3
risks and opportunities, such as indicator SOC-9 in Module 3 Social. Biodiversity policy and
strategy

BASIS ENV-4
Protected and priority
You should report the volume of freshwater in cubic metres (m3) and consolidate areas for biodiversity
it within your reporting boundary using the ‘operational approach’ (see Module 1 conservation
Reporting process). Reports should include examples or case studies to illustrate how
you apply the indicator at a local level.
AIR EMISSIONS

REPORTING ELEMENTS ENV-5

Emissions to air
CORE
SPILLS TO THE ENVIRONMENT
C1 Report the total volume of freshwater you withdraw.
ENV-6
C2 Report the total volume of freshwater you consume. Spills to the environment

Provide a list and / or a percentage of your projects and operations that are in
C3 MATERIALS MANAGEMENT
water-stressed or water-scarce areas.
Report the percentage of freshwater you withdraw or consume in water- ENV-7
C4 Materials management
stressed or water-scarce areas, detailing how you reached that percentage.
Report the total reduction in freshwater withdrawn or consumed due to your
DECOMMISSIONING
C5 water reduction measures, including water you replace or recycle / reuse
within your reporting boundaries. ENV-8
Decommissioning
ADDITIONAL
Report your freshwater consumption per unit of production, the freshwater
A1 consumption intensity and by business activity, such as oil and gas production
and refining.
Report your freshwater withdrawal per unit of production, the freshwater
A2
withdrawal intensity and by business activity.
Report your freshwater withdrawals related to once-through cooling water,
A3
not included in the core reporting elements.
Report separately the volume of non-freshwater taken into your operation, as
A4 an alternative to freshwater withdrawn from surface or groundwater sources
or purchased as potable water.

4.7
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY
ENVIRONMENT

INDICATORS A5 Report water recycled / reused by third parties.

Discuss your efforts to maintain / improve freshwater availability for local
WATER A6
communities within water-stressed or water-scarce areas.
ENV-1 Provide quantitative and qualitative information or case study examples on
Freshwater your operations located in water-stressed or water-scarce areas or other
locations where you have identified potential water management risks,
ENV-2 including:
Discharges to water
• the percentage of freshwater you withdraw from water stressed areas;
• volumes of water you withdraw and / or consume from sources such
BIODIVERSITY
as municipal water supplies and other water utilities and surface water,
ENV-3
including water from lakes, rivers and aquifers;
Biodiversity policy and A7 • volume of freshwater (treated as necessary) you return to the freshwater
strategy environment;
• freshwater withdrawal or consumption intensity for the location;
ENV-4
Protected and priority • water management practices you have adopted;
areas for biodiversity • how you have avoided or minimized freshwater withdrawals;
conservation • how impacts to freshwater-dependent biodiversity and ecosystems have
been avoided or minimized; and
AIR EMISSIONS • your community and stakeholder engagement activities in relation to
water management and the environment.
ENV-5
Emissions to air A8 Report your freshwater withdrawal as a percentage of total water withdrawn.
Report your total volume of freshwater returned to the freshwater
SPILLS TO THE ENVIRONMENT A9
environment.
ENV-6 Describe how you manage other types of water, including disposal. Other
Spills to the environment types might include produced water, process wastewater, stormwater or
desalinated water. Descriptions may include:
MATERIALS MANAGEMENT • water treatment;
A10
ENV-7
• water reused / recycled (indicating whether it is used by you or others);
Materials management and
• water returned to the environment by destination, such as irrigation,
DECOMMISSIONING evaporation ponds, deep wells. Indicate water volumes if appropriate.
Provide information on your use of fresh groundwater extracted for
ENV-8 A11
remediation or to control the migration of contaminated groundwater.
Decommissioning

4.8
Module 4
Environment ENVIRONMENT

INDICATORS
DEFINITIONS
• Freshwater: the definition varies according to local statutes and regulations.
Where no regulation exists, freshwater is defined for reporting purposes as non- WATER
brackish water and may include drinking water, potable water and water used in
agriculture. The total dissolved solids (TDS) concentration of this type of water is ENV-1
up to 2,000 mg/l. Freshwater
• Freshwater withdrawn: the volume of freshwater removed from sources ENV-2
(including surface water, groundwater, harvested rainwater and municipal water Discharges to water
supplies) and taken into the operations of the reporting company for use.
• Freshwater returned: the volume of freshwater a facility discharges (directly
BIODIVERSITY
or via a third party) into the same source or a different source within the same
catchment / watershed. We recommend the discharge value is calculated by
ENV-3
subtracting the amount of water that was not originally part of the freshwater
Biodiversity policy and
withdrawn. Examples include collected stormwater, or any groundwater from
strategy
remediation activities (unless used in the facility as a source of freshwater).
Freshwater that is discharged to a different source that is a non-freshwater supply,
ENV-4
body or aquifer should not be considered freshwater returned.
Protected and priority
• Freshwater consumption: the difference between freshwater withdrawn and areas for biodiversity
freshwater returned. conservation
• Freshwater withdrawal intensity: the ratio between freshwater withdrawal
and a defined unit of production, such as barrels of oil for upstream operations AIR EMISSIONS
and crude oil throughput for downstream operations, and product specific for
petrochemical operations. You can calculate this by dividing the volume of ENV-5
freshwater withdrawn by the output or volume of product created. Emissions to air
• Freshwater consumption intensity: the ratio between freshwater consumption
and a defined unit of production. You can calculate this by dividing the volume of
SPILLS TO THE ENVIRONMENT
freshwater consumed by the output or volume of product created.
• Water replaced: water sourced from a non-freshwater body that has replaced an ENV-6
existing freshwater source to reduce freshwater withdrawal and / or consumption. Spills to the environment
This might include water types such as produced water, process wastewater,
stormwater or desalinated water.
MATERIALS MANAGEMENT
• Water reused / recycled: water that has been used more than once in a single
process or used in other processes, with treatment as appropriate, to reduce ENV-7
freshwater withdrawal. Note that the terms reused and recycled are similar Materials management
and not differentiated for this indicator. If reused / recycled water is reported
quantitatively, the reported volume should equal the reduction in the volume of
freshwater withdrawn that resulted from the reuse / recycling. DECOMMISSIONING
• Reduction in freshwater withdrawn or consumed: a decrease in the amount of
ENV-8
freshwater withdrawn or consumed in the reporting year due to planned actions,
Decommissioning
projects or measures to replace or reuse / recycle water. Freshwater reductions
should be sustainable in future years and can only be aggregated over multiple
years when referenced against the total change in freshwater withdrawn or
consumed in the same period.
• Water stress / scarcity: when reporting qualitative and quantitative water stress
and scarcity information, the definition or indicator of stress and scarcity should
be defined by you. There is no single, universally-accepted measure of stress and
scarcity and many tools and models have been developed that map the issue.
IPIECA has studied a range of these tools in the 2019 [pending] publication Review
of water risk tools, and you should choose which one to use [4].

4.9
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY
ENVIRONMENT

INDICATORS ENV-2

WATER
Discharges to water
ENV-1
Freshwater WHY THIS MATTERS
The oil and gas industry handles large quantities of produced water, process wastewater
ENV-2
Discharges to water and stormwater. These are normally treated to remove contaminants before being
discharged, in compliance with regulatory requirements. This indicator gives specific
quantitative and qualitative information on the amount of hydrocarbon and other
BIODIVERSITY
substances present in discharges from your operations to surface water, including the
ENV-3
sea, rivers, lakes and other waterways.
Biodiversity policy and
strategy
SCOPE
ENV-4 This indicator is about the level of concentrations of oil, grease and other hydrocarbons
Protected and priority within water that is returned to the environment. Typically, local and national regulations
areas for biodiversity
will define levels of hydrocarbons permitted in discharges.
conservation
Depending on your operational activities and how material the issue is for your company,
AIR EMISSIONS you may extend your scope to report separately on the amount of other substances
that are discharged in water streams that you manage. This might include substances
ENV-5 of concern – as defined by you, international standards or other authoritative lists – that
Emissions to air could damage to waterways, ecosystems or human health.
You should report management (reuse, recycling or disposal) of waste streams, such as
SPILLS TO THE ENVIRONMENT salts, brines, oils and sludges, which are separated from water prior to discharge under
indicator ENV-7.
ENV-6
Spills to the environment You may wish to address this indicator together with indicator ENV-1, under the overall
issue of water management. This could include coverage of the approach you take to
MATERIALS MANAGEMENT protect freshwater resources from your activities.
This indicator excludes:
ENV-7
Materials management • quantities of hydrocarbons that are discharged to third-party treatment facilities;
• quantities of hydrocarbons associated with a once-through cooling water
DECOMMISSIONING withdrawal returned unchanged, excluding thermal effects; and

ENV-8 • spills to the environment – which are covered by indicator ENV-6 to the
Decommissioning environment.

BASIS
Report discharge data in metric tonnes of hydrocarbons (oil and grease) or other
substances. You may also express quantities in terms of annual average concentrations
(in mg/l or ppm).
You should consolidate discharge data using your reporting boundary ‘operational
approach’ (see Module 1 Reporting process). Where appropriate, you may include
examples to illustrate how you apply the indicator at a local level.
You should make your measurements using test methods required or approved by local
regulatory authorities (or equivalent applicable standards).

4.10
Module 4
Environment ENVIRONMENT

REPORTING ELEMENTS INDICATORS

CORE
WATER
For upstream facilities, report the quantity of hydrocarbons (in metric tonnes)
C1 and / or annual average concentrations (in mg/l or ppm) in produced water ENV-1
and process wastewater that you discharge to surface water. Freshwater
For refineries and other downstream facilities, report the quantity of
ENV-2
C2 hydrocarbons (in metric tonnes) and / or annual average concentrations Discharges to water
(in mg/l or ppm) that you discharge to surface water.

ADDITIONAL BIODIVERSITY

Report separately other constituents or measures other than that you ENV-3
discharge to surface water from your facilities. Other measures may include Biodiversity policy and
A1 strategy
chemical oxygen demand (COD), sulphides, ammonia, phenols, total
suspended solids (TSS), or non-aqueous drilling fluids discharged).
ENV-4
Discuss your efforts to manage discharges within local water environments Protected and priority
A2
where there is greater potential for environmental risks or benefits. areas for biodiversity
Describe your community and stakeholder engagement activities in relation conservation
A3
to the way in which you manage discharges to water.
AIR EMISSIONS
Explain trends in discharged quantities with respect to operating conditions
A4
such as field maturity. ENV-5
Report the volumes of produced water and process water that are: Emissions to air
• reused / recycled within the operation or to a third party;
A5 SPILLS TO THE ENVIRONMENT
• discharged to surface water; and / or
• disposed of via underground injection wells. ENV-6
Spills to the environment
A6 Report discharges to water by destination type.

A7 Report water discharges in areas of high water stress. MATERIALS MANAGEMENT

ENV-7
Materials management

DEFINITIONS
DECOMMISSIONING
• Produced water: water that is brought to the surface during the production of
hydrocarbons including formation water, flow-back water and condensation water. ENV-8
• Process wastewater: water associated with operations that comes into contact Decommissioning
with hydrocarbons or other chemicals.
• Stormwater: precipitation falling on (or run-off flowing across) a site, which is
collected and discharged from point source outlets, such as pipes, collection
ditches, storm sewers.
• Discharges: intentional releases from a facility into a waterway, typically through
a permitted outlet after treatment.
• Surface water environment: fresh or saline surface water bodies, including
rivers, lakes, wetlands, seas or oceans. Surface water excludes water in the
atmosphere or groundwater.

4.11
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY

BIODIVERSITY

Key points to address

A. How you incorporate biodiversity considerations into your governance and business
processes for the lifecycle of your projects and activities. This may include how you integrate
these processes within environmental management systems (EMS) or health, safety and
environment (HSE) management systems (you may directly link to or incorporate this into your
general reporting on governance and management systems).
B. Any public commitments you have made to protect or enhance biodiversity, such as a
commitment to avoid working in sensitive areas or to pursue ‘net gain’ or ‘no net loss’.
C. Qualitative or quantitative information to describe your overall biodiversity performance, and
strategic decisions or positions, including if you set targets for continuous improvement and
adaptive biodiversity management.
D. How you engage your stakeholders to include their perspectives, particularly local
communities. Your narrative should set out how you assess and address their concerns in your
biodiversity conservation planning and activities. At a corporate level, you can outline the way
in which you work with biodiversity organizations or experts to understand emerging trends
and good conservation practices. You could include site-level examples to demonstrate how
you address stakeholder concerns about potential impacts.
E. Reference to any multi-stakeholder initiatives or partnerships you work with to promote
improved understanding of biodiversity and ecosystems, or to address potential impacts to
biodiversity.
F. Your broader approaches to protect biodiversity and ecosystem services, such as landscape-
wide conservation initiatives, across countries, regions or communities. You might include an
account of your approach to biodiversity offsets; descriptions of initiatives to protect and /
or restore natural habitats, such as forests; or to protect and / or restore other land or marine
environments.

To support your narrative, informed by these key points, you should report on
any or all of the following indicators, based on your material issues.

4.12
Module 4
Environment ENVIRONMENT

ENV-3 INDICATORS
Biodiversity policy and strategy WATER

ENV-1
WHY THIS MATTERS Freshwater
It is a common expectation that companies set out their approach to how they manage
ENV-2
their direct, indirect and cumulative impacts on biodiversity. This indicator encourages Discharges to water
you to describe your overall approach to identifying and managing biodiversity risks and
how you manage dependencies and impacts following the framework of the mitigation
BIODIVERSITY
hierarchy [3], as well as potential opportunities for improvement and conservation.
ENV-3
Biodiversity policy and
SCOPE strategy
You should describe your policies, commitments, strategies and plans for ensuring that
biodiversity management is integrated into your operations throughout their lifecycle. ENV-4
You can broaden your narrative to include impacts and dependence on ecosystem Protected and priority
areas for biodiversity
services.
conservation
Potential impacts, management approaches and conservation opportunities vary
according to geography, where an asset is in its lifecycle, and with the type of AIR EMISSIONS
activity involved. Consequently, the materiality of this indicator can vary significantly
between companies. ENV-5
Emissions to air

BASIS SPILLS TO THE ENVIRONMENT

You may support qualitative information with quantitative data, which should be
consolidated within your reporting boundary using the ‘operational approach’ (see ENV-6
Detailed guidance on developing a reporting boundary in Module 1 Reporting process). Spills to the environment

As noted in reporting element C1 in relation to risk management, you should explain

MATERIALS MANAGEMENT
the basis or criteria for determining the sensitivity of operating areas, with consideration
of potential primary, secondary and / or cumulative impacts as appropriate. ENV-7
Materials management
REPORTING ELEMENTS DECOMMISSIONING
CORE
ENV-8
Describe your biodiversity management approach, including policy, positions, Decommissioning
goals, strategies, risk / impact assessments, mitigation plans and outcomes.
C1 This can include how you apply the mitigation hierarchy and international
biodiversity standards in your operational planning, from early concept
through to decommissioning.
Provide examples or case studies of operating areas where you have put
C2
biodiversity management activities and adaptive management in place.
Set out your processes for identifying and managing activities in sensitive
C3 operating areas, such as Biodiversity Actions Plans. Include the criteria you use
to determine sensitivity and any applicable metrics.

4.13
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY
ENVIRONMENT

INDICATORS ADDITIONAL
Describe how you integrate biodiversity issues within your business strategies,
WATER including plans, commitments or targets for investment in initiatives
A1
and technologies that have the potential to conserve and / or enhance
ENV-1 biodiversity and / or ecosystem services.
Freshwater
Describe how you identify, assess and manage biodiversity impacts within
A2
ENV-2 your supply chain.
Discharges to water Outline how you consider the biodiversity impact of your products, taking into
A3
account their sale, use and disposal.
BIODIVERSITY
Describe any planned or current biodiversity offset projects (in the context of
A4
ENV-3 the mitigation hierarchy).
Biodiversity policy and
strategy

ENV-4
Protected and priority DEFINITIONS
areas for biodiversity • Adaptive management: the process of monitoring, assessing, and reporting the
conservation results of management practices and / or mitigation plans and using the results
to improve future biodiversity performance.
AIR EMISSIONS • Biodiversity Action Plans (BAPs): a set of current or planned actions aimed at
addressing identified biodiversity impacts that will lead to the conservation or
ENV-5 enhancement of biodiversity at local level.
Emissions to air • Biodiversity: the UN Convention on Biological Diversity (1992) [5] defines
biodiversity as the variability among living organisms within species, between
SPILLS TO THE ENVIRONMENT species and between ecosystems. Biodiversity quality and richness are the basis
of the integrity and effective working of ecosystems and thereby underpin all
ENV-6 services they provide.
Spills to the environment • Dependencies: the ecosystem services that a project or operation relies on to
complete its work or run the business. For example, water, aggregates, storm /
MATERIALS MANAGEMENT flood protection, water discharge treatment.
• Ecosystem: dynamic plant, animal and microorganism communities and their
ENV-7 non-living environment interacting as a functional unit (Millennium Ecosystem
Materials management Assessment, 2005) [2]. They include, but are not limited to, coral reefs, tundra,
wetlands, forests, grasslands and farmlands.
DECOMMISSIONING • Ecosystem services: The Millennium Ecosystem Assessment (2005) defines
ecosystem services as the benefits (direct and indirect) that people obtain from
ENV-8 ecosystems [2]. The Assessment defines four categories of ecosystem services:
Decommissioning provisioning services (products obtained from ecosystems such as freshwater
or timber); regulating services (ecosystems’ control of natural processes such
as climate, disease, water flows and pollination); cultural services (recreation,
aesthetic enjoyment); and supporting services (natural processes such as nutrient
cycling that maintain other services).
• Habitat: the place or type of site where an organism or population naturally occurs.
• Operating area: where business activities take place that have the potential to
interact with the adjacent environment.

4.14
Module 4
Environment ENVIRONMENT

ENV-4 INDICATORS
Protected and priority areas for WATER

biodiversity conservation ENV-1

Freshwater

WHY THIS MATTERS ENV-2

Discharges to water
This indicator provides information on the location and scale of your significant assets
and projects that are in or near designated protected areas for biodiversity conservation
BIODIVERSITY
identified by scientific criteria. This may indicate the potential for your operations to
impact biodiversity and your exposure to biodiversity risk. ENV-3
Biodiversity policy and
strategy
SCOPE
ENV-4
There is huge variation in the description of criteria and management approach for
Protected and priority
protected areas and priority sites for conservation at a global, regional and national
areas for biodiversity
level. A protected area is a clearly defined geographical space, recognized, dedicated conservation
and managed, through legal or other effective means, to achieve the long-term
conservation of nature with associated ecosystem services and cultural values (IUCN
AIR EMISSIONS
definition 2008, 2013). For consistency, it is recommended for reporting elements
C1 and A1 that you refer to the IUCN categorization for national protected areas. In ENV-5
addition, you may take into consideration: Emissions to air
• International protected area designations including UNESCO World Heritage sites
(natural and cultural), the Ramsar Convention wetlands sites and the UNESCO Man SPILLS TO THE ENVIRONMENT
and Biosphere Reserves; and
ENV-6
• Key Biodiversity Areas (KBAs) – sites that contribute significantly to the global Spills to the environment
persistence of biodiversity (as listed by the KBA Partnership).
Depending on specific concerns in your locations of operation, other national or MATERIALS MANAGEMENT
regional protected areas or priority sites may be relevant. The Integrated Biodiversity
Assessment Tool (IBAT) from the IBAT Alliance provides a useful compendium of both ENV-7
protected areas and KBAs. Materials management
Please note the definition of terms provided in indicator ENV-3. It should be noted
that your operating areas may be within, adjacent or near more than one type of DECOMMISSIONING
biodiversity-rich area. Although this indicator does not define ‘near’ in terms of an
ENV-8
absolute distance or buffer zone, your impact assessments for operations or projects Decommissioning
can help indicate if biodiversity may be affected in an adjacent or near protected area.

BASIS
You should include qualitative information including examples to illustrate how
you apply the indicator at regional and local levels. You may support this with
quantitative data, which you should consolidate within your reporting boundary
using the ‘operational approach’ (see Module 1 Reporting process).

4.15
 SUSTAINABILITY REPORTING GUIDANCE FOR THE OIL AND GAS INDUSTRY
ENVIRONMENT

INDICATORS REPORTING ELEMENTS

CORE
WATER
Provide a list and / or a percentage of your projects and operations that are in
C1
ENV-1 or near protected areas and priority sites for biodiversity conservation.
Freshwater Describe your commitments, including avoidance and mitigation measures,
C2 that relate to projects and operations in or near protected areas and priority
ENV-2
Discharges to water sites for biodiversity conservation.

ADDITIONAL
BIODIVERSITY
For projects and operations included in C1, describe your progress on:
ENV-3
• ongoing or planned biodiversity / ecosystem services activities;
Biodiversity policy and
strategy A1 • biodiversity impact mitigation measures;

ENV-4
• BAPs in place; and
Protected and priority • monitoring plans and verification processes.
areas for biodiversity
conservation Describe the outcomes of any baseline assessments for planned projects where
A2
future activities are in or near internationally-protected biodiversity areas.
AIR EMISSIONS

ENV-5
Emissions to air

SPILLS TO THE ENVIRONMENT

ENV-6
Spills to the environment

MATERIALS MANAGEMENT

ENV-7
Materials management

DECOMMISSIONING

ENV-8
Decommissioning

4.16